Volvo confirmed that it will cease production of all diesel-powered vehicles by early 2024.
The announcement comes on the heels of Volvo's commitment last year to eliminate its research and development budget for combustion engines.
The company has committed to selling only electric cars by 2030, and Volvo aims to be a fully carbon neutral company by 2040.
Automakers continue to move towards electrifying their lineups in small steps and big leaps, with Volvo announcing Tuesday that it will end production of all remaining diesel models by early next year.
In conjunction with Volvo ceasing diesel production, the automaker doubled down on its move towards electrification. Volvo made the decision last year to end development of new combustion engines and no longer spends any R&D budget to do so. Last November, the company sold its stake in Aurobay, a joint venture company that held the carmakers remaining combustion engine assets.
Volvo hasn't sold a diesel powered vehicle in the U.S. in decades, but even viewed from a global standpoint, the announcement doesn't come as a huge surprise given the declining market share held by Volvo's diesel-powered cars. According to Reuters, the majority of the cars Volvo sold in Europe were diesel as recently as 2019, though in 2022 they made up just 8.9 percent of the manufacturers sales.
"Electric powertrains are our future, and superior to combustion engines," said Jim Rowan, Chief Executive at Volvo Cars, in a statement. "We’re fully focused on creating a broad portfolio of premium, fully electric cars that deliver on everything our customers expect from a Volvo—and are a key part of our response to climate change."
The move is part of Volvo's roadmap towards 100 percent electric vehicle sales by 2030, and on to its further aims of being a carbon-neutral company by 2040. As far back as 2019, the automaker began electrifying all new models, including hybrid, plug-in-hybrid, and battery-electric vehicles such as the upcoming EX30 and EX90 SUVs.
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